B&Q, the $7.8-billion UK-based home improvement retailer, is closing in on its India foray. Top company executives are in India currently to hold talks with a host of Indian companies for the debut into the country’s $12-billion organised retail mart. Part of the UK-based retail major Kingfisher group, B&Q is exploring both franchisee and joint venture options.
While the retailer is in talks with established retail players, it is also learnt to be initiating discussions with relatively new-to-retail companies. B&Q’s chief (Asian operations) Steve Gilman had visited India early this year to explore opportunities in the country for a B&Q chain. Mr Gilman had also sought a clarification on India’s road map to relaxing FDI in retail norms from commerce and industry minister Kamal Nath.
The retailer is expected to make an initial investment of $250 million in its Indian retail venture. Multi-brand retailers like B&Q can only opt for the franchisee route for their India entry currently. India’s regulations currently permit 51% FDI in single-brand retail and 100% FDI in cashand-carry under the automatic route.
While there were indications from the commerce ministry earlier on relaxing FDI norms in certain segments in specialty retail, it has not been followed by any policy announcement so far. With a clarity on that front expected to arise soon, B&Q is also looking at the opportunity to forge a JV with an Indian partner.
B&Q is the number one do-it-yourself retailer in Europe and the third largest in the world, with over 700 stores worldwide. It sells home products ranging from bathroom accessories and carpets to paints and appliances. Apart from B&Q, the Kingfisher group operates retail brands like Brico Depot, Castorama, Screwfix, Koctas and Hornbach.
The home improvement market in India, including construction material like timber, cement and paints, is estimated to be worth Rs 3,50,000 crore. The market is growing at 10-15%, said an industry consultant. The organised players in India’s home improvement market are Home Centre from Dubai-based Landmark Group, THS (earlier called The Home Store) and the latest entrant, Future Group’s HomeTown.
Co likely to make an initial investment of $250 m in its Indian retail venture B&Q is the number one do-it-yourself retailer in Europe and the third largest in the world, with 700 stores worldwide The company sells home products ranging from bathroom accessories & carpets to paints and appliances The home improvement market in India, including construction material, is estimated at Rs 3,50,000 crore
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